Victorian economy at a glance
Contributing to the world’s 12th largest economy1, Victoria has long been a powerhouse of the Australian economy. With economic activity and full-time employment now well above pre-pandemic levels, the state’s strong performance has been demonstrated by a $515 billion Gross State Product (GSP) in 2021-22.2
The Victorian economy has well and truly bounced back from the pandemic.
- Victoria’s economy grew 5.6% in 2021-222, one of the fastest rates in Australia
- Victoria’s current economic growth rate is 14.1% higher than its decade average.3
Compared to other Australian states, for the March quarter 2023, Victoria has:
- the highest increase in construction work completed, 19.3% above its decade average
- the second strongest growth of retail spending, 14.8% above its decade average
- the third highest rate of absolute annual population growth.3
Strong performance forecast to outperform other economies
Victoria’s economy has experienced strong growth over the last decade and is forecast to grow by 3.25 per cent in 2022-235. This I supported by Deloitte Access Economics (DAE) business outlook June quarter 2023.
Currently, at 3.7 per cent, the state-wide unemployment rate is at its low since records began.7 The regional unemployment rate is even lower, sitting at 2.5 per cent. The Victorian economy’s strength is demonstrated through the creation of 200,000 jobs since the beginning of the 2020-21 financial year. Victoria is targeting to create 400,000 jobs by 2025.5
The Australian Bureau of Statistics forecasts Victoria's population is projected to reach between 7.5 and 7.9 million people by 2032, representing a growth of up to 19 per cent from 2020 levels. Melbourne is predicted to be Australia's largest city in 2031-32.8
Victorian Government is committed to an economy of the future
The State Government of Victoria is committed to attracting and retaining the global know-how to create high-value jobs and infrastructure for current and future generations.
The Victorian Government has committed $90 billion to Victorian’s Big Build. It will be a major driver in economic and jobs recovery following the pandemic, delivering a pipeline of infrastructure projects for the next decade.
Other Victorian Government support initiatives include:
- an unprecedented $1.7 billion energy package creating renewable energy hubs across the state to meet our net-zero emissions target for 2050. Victoria was the leading state for large-scale wind and solar generation in 2021.
- Victoria’s biggest ever investment in science, technology and innovation through the $2 billion Breakthrough Victoria Fund.
- support for startups through the $20 million Equity Investment Attraction Fund announced in the 2022-23 Budget.
- financing for local businesses at the cutting edge of innovation and technology through the Venture Growth Fund.
- an R&D Cash Flow Loans program to ensure Victoria's economy remains attractive to international investors.
Victoria is open for business
International investment remains critical to securing the skills, capabilities and technology that will ensure Victoria’s long-term growth. That’s why we are committed to attracting the best global organisations, talent and capability to our state.
Find out more about Victoria’s:
For insights into how Invest Victoria has helped international businesses grow, thrive and become globally competitive, download our International Investment Report.
1World Development Indicators database, World Bank, 1 July 2023
2Victorian Economic Fact sheet, The Department of Treasury and Finance, 4th Aug 2023
3Commsec State of States Report July 2023
4State budget 22-23, The Department of Treasury and Finance
5The Department of Treasury and Finance
6The International Monetary Fund
76291.0.55.001 Labour Force, Australia, Detailed Labour Force, Australia, Detailed, June 2023 | Australian Bureau of Statistics (abs.gov.au)